KUALA LUMPUR – Taking note of the financial impact that the Covid-19 pandemic has had on the pockets of Malaysians, Putrajaya has decided to slightly lower the income tax rate by one percentage point for those earning between RM50,001 and RM70,000 annually.
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz told the Dewan Rakyat, when he tabled the 2021 Budget, that this reduction is expected to benefit some 1.4 million taxpayers.
“The government will announce a few initiatives to alleviate the financial burden of the public during this pandemic. The first initiative is to reduce income tax collection.
“Currently, those within this annual income bracket, pay 14% of their yearly income and with this reduction, they will be paying only 13%,” said Tengku Zafrul.
The ministry has also decided to increase the income tax exemption for sports equipment and e-paper subscriptions to RM3,000 from the current RM2,500.
Better repayment scheme
At the same time, banking institutions will improve their Targeted Repayment Assistance (Bantuan Bayaran Bersasar) to B40 borrowers who are also Bantuan Sara Hidup (BSH) and the upcoming Bantuan Prihatin Rakyat (BPR) recipients, as well as micro-businesses with a total approved loan of RM150,000.
They are granted two options: Delay monthly repayment for three months or reduce monthly repayment by 50% for six months.
Borrowers who are eligible should contact their respective banks to make their options and finalise the documentation.
“For M40 borrowers, the application process for loan repayment assistance will be made easier. Borrowers must make a self-declaration of reduced income to obtain the assistance.
“These flexibilities will begin this December 2020,” said Tengku Zafrul. – The Vibes, November 6, 2020
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